What is Broker Non Votes?

Broker non-votes occur when a beneficial owner of shares held in “street name” does not give instructions to the broker, bank or other nominee holding the shares as to how to vote on matters deemed “non-routine.” Generally, if shares are held in street name, the beneficial owner of the shares is entitled to give voting …

What is discretionary voting?

Brokers that issue discretionary voting have the option of voting all uninstructed fully in their discretion (typically in line with the board’s recommendation), or the broker can vote shares in the same proportion (For, Against or Abstain) as the shares voted by retail holders that returned a proxy (proportional …

Can non shareholders vote?

Non-voting stock is stock that provides the shareholder very little or no vote on corporate matters, such as election of the board of directors or mergers. The Class B stock carries 1/10,000th of the voting rights of the Class A stock, but 1/1,500th of the dividend.

What does proxy discretion mean?

A proxy may be given discretion or they may be instructed to vote only in accordance with the wishes of the owners of the shares. When a shareholder gives their proxy “discretion” it means that their proxy submits votes as they believe to be appropriate, without reference back to the shareholder.

What rights do non-voting shareholders have?

It is not uncommon for companies to issue preferred stock with limited or no voting rights, but nonvoting common stock is rare. Unlike holders of voting shares, holders of nonvoting shares cannot vote on: other corporate governance matters, including say-on-pay votes and bylaw amendments put to a stockholder vote.

What is the point of non-voting shares?

Non-voting shares are mostly issued to employees or to family members of the main shareholders. This class of shares allows the main shareholders to retain control of the company whilst multiplying the number of shareholders.

Are non-voting shares worth less?

Non-voting shares are usually less valuable than voting shares despite being entitled to exactly the same stream of dividends.

Are non-voting shares worthless?

This statement implies non-voting stock is worthless. That is untrue. Class A shares can vote – they own 100% of the vote share. But both classes are pari passu in economic terms – if Class A gets a $1 dividend Class B must receive the same.

Do shareholders get a say?

Buying a share of a company makes you a shareholder, but it does not give you a say in the day-to-day operations of a company. Shareholders own either voting or non-voting stock, and that determines whether they can weight in on big picture issues the company is considering.

How many broker votes are authorized by NYSE rule 452?

Historically, the broker discretionary votes authorized by NYSE Rule 452 have amounted to a significant percentage of votes cast. According to RiskMetrics Group, approximately 80 percent of investors own their shares through brokers, and only one-third of retail voters vote their shares.

How are broker non-votes affect mutual fund proxy?

The impact of broker non-votes can be hard to anticipate. Broadridge’s Michael Collins explains how they happen and how to plan accordingly. When it comes to mutual fund proxy, everyone knows how important it is to get the vote. Yet there are instances where getting one vote can cost you another – which leads to unexpected outcomes.

What are the rules for the New York Stock Exchange?

All NYSE exchanges are registered securities exchanges, and are subject to the regulatory oversight of the SEC. All rules and rule amendments filed and approved by the SEC pursuant to Section 19 (b) of the Securities and Exchange Act of 1934 and Rule 19b-4 thereafter.

What are non routine matters in stock market?

Everything else is considered, by rule, non-routine. Non-routine matters are those that substantially impact the rights and privileges of shareholders. Among other things, this may include: mergers, advisor and sub-advisor changes, redomiciles and investment objective proposals.